Global investment in Fintech (Financial Technology) more than doubled last year (2018) to US $55.3 billion. It is big business and looks set to stay that way for the foreseeable future. However, many people are still unsure of what Fintech actually encompasses and how it helps the changing society we live in today.
This blog will explore what Fintech is, how it is helping to shape the future of business, and why we should all be looking at Fintech training to gain commercial success.
What is Fintech?
Fintech, short for Financial Technology, is the term used to describe technologies which aim to enhance, automate, and improve the provision for financial services. Essentially, any company which uses the internet, software tech, mobile devices, or cloud services to implement or distribute financial services could be considered a Fintech business.
It is a multifaceted industry which can encompass sectors such as, mobile payments, stocks and shares, investment, insurance, loans, money transfers, asset management, and so on.
Fintech can encompass both B2B and B2C companies.
Fintech and Business
As stated above, global investment in Fintech has skyrocketed over the last couple of years – Europe has experienced the biggest rise, however, countries such as Dubai, are now beginning to invest heavily in this growth sector with events such as Expo 2020, and the launch of the Dubai Internet City (DIC).
Fintech has changed the way that businesses operate at a base level. Companies no longer need to rely on traditional banking methods for investment but can instead, approach potential lenders directly via options such as, crowdsourcing.
Crowdsourcing enables entrepreneurial business propositions to realise their full potential through connections with investors around the world. Simply pitch your idea online, and wait for an investor to back you.
Likewise, payments and money transfers can now be executed at the touch of a button – no more waiting for weeks on end for overseas payments from customers. Companies, such as TransferWise, now offer effective alternatives to traditional methods, so that even small firms can send money across borders with ease and limited expense.
The savings made through Fintech innovation has been massive for virtually every sector, to such an extent that it has threatened traditional banking methods of ‘bricks and mortar’ financial institutions.
Speed, adaptability, simplicity, and financial savings are the main reasons why Fintech is essential to businesses, and looks set to stay that way as we traverse the Fourth Industrial Revolution.
As customers, Fintech has given us the ability to handle our financial affairs via our smartphones. Whether you want to check your portfolio, pay a bill, move money, or do a little online shopping while commuting, this is all now possible due to Fintech.
The Fintech sector is just getting started. The progress made with AI, Blockchain, crowdfunding and so on, is only in its infancy, with experts suggesting that between 2 to 6 million jobs are likely to be lost as a result of these advances over the coming decade.
The repercussions for those companies who do not move with times could be serious, and may lead to loss of custom, competitive disadvantage, and at worst, running the risk of becoming completely obsolete.
Fintech training can help you and your staff understand the key definitions linked to Fintech, show how it can assist operations on a day-to-day basis, highlight the main opportunities the sector presents, and how these can be lucrative for your company.
Staying on the cutting edge of Fintech technologies will ensure you’re able to make the most of important advances and will help your business grow.
If you would like to brush-up on some Fintech terminology, please check out our Fintech Glossary.
Likewise, if you are interested in Fintech training in the UAE, MENA region or Dubai please contact Creative Word to find out how we can help your business advance.